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Can someone explain the stock market to me? I have no idea what it's about lol

ps. I rate answers if they are actually helpful or funny so your time won't be wasted lol thank you :D

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It's a way for people to own small pieces of businesses. It takes skill and luck to do well at it since you are pretty much gambling that what you choose will do what you think it will. I can sell say carnival stock short meaning I think the price of its stock will fall. If I'm right I make money, if I'm wrong I lose money or I can buy a bank stock like citibank when they were really low due to the housing mess and gamble that the stock price would rise eventually. Again, right makes a profit, wrong loses money.
There's a very old saying that covers basic stock buying... Buy low, sell high
you used to have to use a stockbroker to do your buying but with the rise of companies like sharebuilder and etrade, you can do it yourself for minimal fees

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It's basically how good the company is doing

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musicprodigy

... Actually I want to know the answer to this question too... Haha(:

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http://en.wikipedia.org/wiki/Stock_market
This page should answer all your questions :)

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For an easy to understand explanation, see http://www.factmonster.com/spot/stockmarket.html.

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KittySusca

Large companies sell little pieces of themselves to independent buyers.These pieces are called stocks,and the units of them are called shares.The stock market is a central location where people can come together everyday to buy and sell each others little pieces of the different companies.Different variables make the pieces go up or down in value,related to how the company is doing.So stock buyers and sellers try to guess which stock will go up,and then buy it for a low price.The stock they buy gives them a payout whenever the company makes money.Right now the market is pretty unstable.So if you have substantial money,it is probably best to invest it elsewhere,or keep it in a shoebox under your bed.

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Ahh ok, thanks! That makes sense
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KittySusca
no problem
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